Port Nelson has posted a strong half year financial result with increased profit and revenue driven by its fourth-party logistics and supply chain provider QuayConnect.
Net profit after tax was up $600,000 to $4.3m and revenue was up $2.1m to $35.7m compared to the same period last year for the six months to December 31. An interim dividend of $1.5m was paid to shareholders.
Cargo volumes (revenue tonnes) and container throughput (twenty-foot equivalent units) continue to remain strong, reporting results of 1.59m and 53,010 respectively, compared to 1.61m and 52,250 for the same period last year.
Log export volumes represented 34% of total cargo volumes. The port says it has seen the log export market recover from COVID-19, driven by low stock levels in China and strong export prices.
The port has been impacted by world-wide shipping congestion, and vessel scheduling volatility.
“The disruptions continue to impact container and cargo movements, we expect to see this influence our year-end results,” chief executive Hugh Morrison says.
The volatility is leading to higher cargo charges from shipping lines which falls heavily on importers and exporters.
“The team continue to show resilience and adapt to these ever-changing conditions, ensuring cargo flow disruptions are kept to a minimum,” he says.
The port has been facilitating COVID-19 testing onsite with a number of employees, specifically frontline border workers that require testing each week.
“The team has had an overwhelmingly positive attitude towards required testing and the port continues to safeguard the community with rigorous procedures,” Morrison says.
“The port has also focused on health and safety in the past six months, these efforts have achieved results that were better than expected, this is seen with our injury statistics which have reduced by over 60%.”
The port continues to be active in community sponsorships and so far this year it has supported a range of organisations and initiatives across the region with a total of $71,000.
It also signed on to sponsor the Tasman Mako, including sponsoring the newly named Port Nelson Rippa Rugby Tournament for a three-year term under the Port Nelson brand.
The capital works programme at the port also continues with geotechnical findings currently being considered regarding the widening of the port entry channel.
“In December, the new replacement crane was commissioned, which will result in reduced fuel and carbon emissions.
“The increased lifting capability from one 20-foot container to two will significantly reduce the number of crane movements at the port,” Morrison says.
Work on replacing and strengthening 100m of Main Wharf North continues and the port expects the work to be completed later this financial year.
Looking forward, the port is forecasting a drop in apple, kiwifruit, and wine volumes due to natural events that have impacted imports and exports. Despite this, it expects to sustain a strong financial performance and remains on target to deliver its forecast full year-end dividend to shareholders.
